HEAD-TO-HEAD: JP Morgan versus UBS

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Conclusion

Ng is impressed with the JP Morgan and UBS product, as is FE Fundinfo more generally, and rival fund research firm Morningstar.

FE Fundinfo awards five crowns and Morningstar assigns five stars to both funds, and the latter also gives the JP Morgan fund a Bronze designation.

The FE Fundinfo ratings range from one to five, and aim to identify funds which have displayed superior performance in terms of stock-picking, consistency and risk control.

The Morningstar rating system is an evaluation of funds based on their past performance, which also takes into account their risk and, increasingly, their fees.

“There is not a great deal of choice in the China mixed asset category beyond these two fund,” said Ng.

“For investors who are very positive about the China market outlook and want to ride the growth story, then the UBS fund is probably the better option,” he said.

“Also, the managers’ ability to take large cash positions when they don’t like the market helps mitigate risks and reduces the fund’s volatility,” he added.

However, on balance Ng prefers the JP Morgan China Income Fund.

“It is more risk averse in its stock selections, produces regular income to meet a specific target and achieves a steady return,” he said.

“In markets where worries about the Sino-US trade dispute are likely to persist, the JP Morgan fund is safer,” said Ng.

“The UBS fund’s tendency to make bigger calls, puts pressure on its managers to get those calls consistently right,” he added.

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